Corporate Nature Risk Perceptions

We survey companies worldwide on their nature risk perceptions, actions, and investor interactions to provide an early view of an emerging risk. Nearly half view nature risks as financially material. Nature restoration efforts are less widespread than mitigation efforts. Among respondents who experienced investor engagement on nature, three-quarters see it as value-generating, often prompting strategic changes. Many findings have implications for researchers, investors, and policymakers. First, 28% (44%) of companies believe that nature-related transition (physical) risks already have financial effects, indicating growing urgency. Second, financial effects originate from various stakeholders and sources, making it difficult to capture risks with a few standardized metrics. Third, while 40% state that investors consider nature risks when investing, only about 20% think investors expect nature-related cashflow or cost of capital effects. Fourth, 50% believe that investors prioritize climate over nature; however, half of them think both topics should be valued equally.